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Friday, Aug 7th, 2020

Equinor sticks to decarbonisation pledge despite first-half loss

The Norwegian oil major will continue CCS projects and electrification of offshore oil and gas fields

Despite incurring heavy losses during the first half of 2020 and facing an uncertain market environment, Norwegian oil major Equinor said it will continue efforts to decarbonise and become a broader energy company, following similar pledges by other oil and gas firms.

Equinor during the first half reported a net loss of $956 million, compared to a net profit of $3.19 billion in the first half of 2019.

“We expect market volatility to continue going forward. The long-term market implications from Covid-19, with possible lower demand and reduced investments in the industry, remain uncertain,” chief executive Eldar Sætre said.

“However, Equinor’s strategic direction remains firm and we are committed to develop Equinor as a broad energy company to create value in a low carbon future.”

Sætre stressed that the company has taken investment decisions for transportation and storage of CO2 in the Northern Lights project and for the Sleipner field to be partly electrified with renewable energy from shore.

The company’s new energy solutions area – which includes its offshore wind activities – delivered an around neutral result in the quarter, including costs related to maturation of new projects.

The effect of high availability and production on all offshore wind assets in the first quarter of 2020 was partly offset by effect of seasonal lower wind and planned maintenance in the second quarter, and by effect of partial divestment of ownership share in Arkona wind farm in the fourth quarter of 2019, Equinor said.

The company added it was progressing the giant 3.6 gigawatt Dogger Bank wind project in the UK’s part of the North Sea, and the Empire Wind project off the US coast.

Equinor’s pledge to stick to decarbonisation and renewable energy investments comes after Spanish oil major Repsol, despite falling profits and cuts in other areas, on Thursday also said it will maintain its energy transition commitments.

Amid a massive collapse in oil and gas prices and an uncertain future of how the market will develop, oil and gas majors increasingly see renewable energies as a field to secure long-term profits.(Copyright)

Source: Upstream | This text was excerpted from the media outlet cited on July 24, 2020 and is provided to Noia members for information purposes only. Any opinion expressed therein is neither attributable to nor endorsed by Noia.